Good first step, but not far enough, IMO. They should also take away all federal subsidies to private loan agencies, but good first step nevertheless.
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Source: Washington Post
By Ian Shapira
Washington Post Staff Writer
Friday, September 28, 2007; Page A06
President Bush signed into law yesterday a student loan bill that will provide more than $20 billion in federal aid to college students and is being likened to the G.I. Bill, which helped millions of World War II veterans attend college.
The law, which received overwhelming bipartisan support in Congress, will slash federal subsidies to private loan companies and increase grants for students. It will gradually reduce interest rates on federally subsidized loans for low-income students to 3.4 percent over five years. The law will also offer loan forgiveness for those who have held public service jobs for 10 years and will cap payments on federal loans at a certain percentage of a college graduate's income.
The new law, the College Cost Reduction and Access Act, overhauls the nation's student loan system. Recent investigations have revealed how lenders have showered university officials with gifts to woo student borrowers and drive up profits. Congress reacted sharply to the disclosures, and the support to revamp the student loan industry was considered a rare bipartisan endeavor.
The House of Representatives approved the law 292 to 97; the Senate vote was 79 to 12. Only Republicans voted against it....
But as Bush signed the bill, he suggested that it is not perfect. "This bill makes some spending commitments that aren't paid for yet, and I look forward to working with the Congress to ensure Pell Grant increases that are not fully funded in this bill are paid for with offsets in other areas."...
Read more: http://www.washingtonpost.com/wp-dyn/co ... icle/20...
